BetonMarkets Systems Part 1: Timing Your Entries

Trading systems are easily adapted to the BetonMarkets wagering interface. In fact they are easier to work here than using traditional brokerage trading vehicles, because you have the added advantage of not having to worry about setting stops. The risk is managed purely by position sizing, that is deciding what percentage of your account to bet on each trade. That makes it easier to manage because the thing that kills most traders is letting losing positions get out of control.

A trading system is a set of entry and exit rules. As just mentioned however, most of the time at BetonMarkets you don't need to worry about exits. So all you need is a bet size and a set of entry rules.

You need to decide which strategy you want to use before deciding on the rules of your system. Are you going to trade breakouts, trends, or reversals? No matter which strategy you choose, most likely your entry rules will be based on chart indicators.

If you are trading breakouts, that indicator will likely be volume. Every time you see a solid breakout from a trading range with a volume spike that will be your signal. But you still need to decide whether to enter on the breakout itself, or wait for a pullback. If you wait for a pullback you will miss some trades, but will get better pricing on the ones you play. Therefore waiting for pullbacks is the recommended way to trade breakouts at BetonMarkets.

Most traders are trend-traders. They love to catch a good trend at the right spot and either ride it for all it's worth, or try and catch a small high-odds swing. Both approaches have their merit. In the case of trying to catch a big move you enter on a downswing and choose a high target with a long time-frame. In the case of trying to catch swings within a trend (a great tactic that is very popular) you wait for price to pull back to a moving average or a trendline and bet on it returning to the other trendline (or channel line).

Reversal traders draw channels as well, but they are horizontal as opposed to sloping. In this case you are waiting for price to reach the outer channel line, stall, and bet back the other way. Bollinger bands are a great tool for both range-traders and trend traders who are trying to capture small swings within a trend.

Finally, you will probably want to use some kind of oscillator as a confirmation indicator for entering your trade. My favorites are Slow Stochastics and RSI. When the price pattern is doing what you want, simply wait for the oscillator to turn away from the extreme and start moving in the other direction. That helps make it a high-odds play.

As a matter of fact a good trading system is to simply use the Slow Stochastics in two different time frames. Wait for it to be moving strong on the long time frame and enter your position when the short-time frame (the one you are trading in) turns from the outer extreme in the direction of the longer time frame.

Whatever your BetonMarkets system is, you have to price your wagers out well in order to succeed. That's what we'll talk about in part two of this article.

Disclaimer: The information on this website is for entertainment purposes only and is not to be taken as financial advice. Always consult your professional financial advisor before undertaking any investment or trading plan. In some jurisdictions financial betting at BetonMarkets.com might be considered online gambling and therefore be deemed illegal, so check with your local laws first. There is risk associated with trading or financial betting and you can lose money. Proceed at your own risk.

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